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Information about Ethereum (ETH)
Ethereum is a decentralized open-source blockchain system that features its own cryptocurrency, Ether. ETH works as a platform for numerous other cryptocurrencies, as well as for the execution of decentralized smart contracts.
Ethereum was first described in a 2013 whitepaper by Vitalik Buterin. Buterin, along with other co-founders, secured funding for the project in an online public crowd sale in the summer of 2014. The project team managed to raise $18.3 million in Bitcoin, and Ethereum’s price in the Initial Coin Offering (ICO) was $0.311, with over 60 million Ether sold. Taking Ethereum’s price now, this puts the return on investment (ROI) at an annualized rate of over 270%, essentially almost quadrupling your investment every year since the summer of 2014.
The Ethereum Foundation officially launched the blockchain on July 30, 2015, under the prototype codenamed “Frontier.” Since then, there has been several network updates — “Constantinople” on Feb. 28, 2019, “Istanbul” on Dec. 8, 2019, “Muir Glacier” on Jan. 2, 2020, “Berlin” on April 14, 2021, and most recently on Aug. 5, 2021, the “London” hard fork.
Ethereum’s own purported goal is to become a global platform for decentralized applications, allowing users from all over the world to write and run software that is resistant to censorship, downtime and fraud.
News
Ethereum ETFs are experiencing significant outflows, with a total of 82.47 million USD pulled last week, reflecting ongoing hesitation from institutional investors.
ETH’s price has dropped by 11% recently, suggesting a risk of falling below the critical level of 1,500 USD as bearish market indicators persist.
Without renewed institutional interest, ETH’s price recovery may be hindered, with forecasts indicating potential lows around 1,395 USD.
Ether’s price has returned to the 1,600 USD level, last seen during its 2021 rally. This comes alongside a notable increase in stablecoin supply on the Ethereum network.
Since January 2021, the total stablecoin supply skyrocketed from 22 billion USD to 123 billion USD, signaling a shift in market conditions.
Developer activity in the crypto space is at its lowest since 2018, raising concerns about innovation. Meanwhile, Bitcoin (BTC) price is consistent around 83,600 USD, with a 1.9% recent increase.
EIP 1559 altered the economic model of Ethereum, making it resemble tech stocks while Bitcoin maintains its status as a ‘store of value.’ Kazemian emphasizes that this shift has led to a decline in ETH’s price performance.
Ethereum continues to underperform as the ETH/BTC pair hits a low of 0.18666, meaning 1 BTC is now worth 53.5 ETH. Institutional investment favors Bitcoin over Ethereum, further jeopardizing ETH’s market position.
This past week, Robinhood reported a 5.8% increase in stock price to 42.75 USD, influenced by President Trump’s comments and market dynamics. Similarly, MARA gained 4.5%, trading at 12.47 USD, fueled by improved production and an upcoming data center.
Coinbase is under pressure as BlackRock appoints Anchorage Digital for its Bitcoin and Ethereum ETFs, managing 45 billion USD in assets. This round of competition emphasizes the shift towards alternative custodians amidst evolving market demands.
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